Friday, March 20, 2009

Multicultural Consumer Confidence

A new report entitled Yankelovich Multicultural Marketing Study (there's a lot of cool research out this week) evaluated the current mindset of African American and Hispanics in the United States. The study sheds some light on the challenges that both ethnic groups are facing in light of greater empowerment. This is defined not only by political strength, but by consumer buying power in the United States.

Both African Americans and Hispanics note that they feel greater optimism for their personal future as a result of Barack Obama's presidency (87% and 79%, respectively compared to only 55% for non-Hispanic whites.) Yet, in light of the economic crisis, 54% of African Americans and 65% of Hispanics say they feel moderate to high anxiety about their current prospects. That compares to 43% of non-Hispanic whites.

With both African American and Hispanic unemployment reaching the 10% mark compared to the national average of 8%, it's no surprise that multicultural consumers are feeling the economic crisis like no one else. Add into the mix that both ethnic groups were disproportionately affected by the sub-prime mortgage mess and you have a recipe for disaster.

But despite these challenges, African Americans and Hispanics are critical consumer segments for marketers. They continue to grow economically (both approaching $1 trillion in buying power) and politically, (African Americans and Hispanics were critical to Obama's success.) As a result, advertisers should avoid the temptation to walk away from multicultural marketing during this recession. Neither group is genetically predisposed to brand loyalty and one brand's loss, is another one's gain.

Mission

The multicultural population in America is shaping its future and our collective success depends on two things: technology and people. No one doubts the power that technology possesses to transform our world. Yet we still do not fully comprehend how multicultural consumers use technology. The digital divide is not the distance between minorities and technology. It's a matter of debunking the myths that persist.

Contributor

John-Paul Aguirre is a communications planning specialist with expertise in multicultural and international marketing. JP is VP, Communications Planning Director at Universal McCann. He completes his Masters in Strategic Communication at Columbia University in May 2010. He has a strong interest in diversity and technology, so this blog is about marrying those two passions.